Nearing Year-End Peak Season, PVC Demand In Vietnam Has No Sign Of Improving
- Local PVC producer reduced November shipment offers by VND200,000/ton ($9/ton)
- November shipment offers from a Japanese PVC producer edged lower by $30/ton
- No sign of improvement in demand
Market players informed SSESSMENTS.COM that nearing the year-end season, PVC demand in Vietnam has no sign of improving and expected to remain stagnant. For November shipment, ethylene-based PVC offers from one of the local producers decreased by VND200,000/ton ($9/ton) compared to October. Meanwhile, another local PVC producer stated that the company decided to delay the announcement for November shipment offers until next week due to the high VCM prices. From the import market, November shipment offers for ethylene-based PVC from a Japanese producer reduced by $30/ton compared to October. The producer believes that the deals could be achieved at the initial offer level as the current price is considered as attractive. In the meantime, a Taiwanese distributor managed to move out all of the allocation for November shipment from the leading Taiwanese PVC producer at the same level to the initial offer.
The overall demand for PVC resins remains weak due to subdued sales for the finished products. Besides, the use of HDPE pipe in the construction sector recently has led to slow sales for PVC pipe. For the finished products, weak demand is associated with the rainy season and the economic slowdown. On the supply front, SSESSMENTS.COM was noted that there are no significant issues reported in the country.
Pertaining to the outlook, market players opined that import PVC prices have room to move down further below $800/ton-level. Likewise, a Japanese producer also opined to SSESSMENTS.COM that the December shipment offers are going to be on a downtrend. Demand-wise, no sign of improvement seen nearing the year-end ahead of the preparation for the Chinese New Year in January 2020.
Tags: Asia Pacific,English,EN PVC VIETNAM WSS,Polyvinyl Chloride (PVC),Southeast Asia,Vietnam,WeeklySSESSMENTS PVC prices,Vietnam PVC pricesPublished on October 22, 2019 8:31 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)